If production runs short of these resources, and they are not readily available, this can result in stopped production. The lost productivity results in increased overhead costs as a percentage of production. This can then lead to reduced competitiveness, resulting in reduced revenues, and an inability to continue to take advantage of economies of scale, for not only that particular resource, but also all other resource inputs for that product or service.
The consequences of obtaining resources for an organization are both external and internal. Externally, the primary consequence is that that resource is no longer in the environment for other organizations to acquire. This can further positively impact the organization's competitiveness that was able to obtain the resource, if the other organizations vying for the resource are competitors.
This consequence also affects other organizations outside of the competitive sphere of the one organization that acquired the resource. Even if another organization isn't a competitor regarding the final product or service, they too will be negatively affected by the removal of the resource from the environment. This consequence resulting in higher demand and scarcer availability will directly impact the cost of the resource to the rest of the organizations who need the resource as an input, no matter what their output, in the end, is.
A final external consequence of obtaining a resource is the impact this acquisition can have on the political relationship between two countries, if the resource is located outside of the home country of the organization. An economically advantageous relationship between entities in different countries can help foster a political relationship between the two countries. Profit is a common language around the globe. If resources from a country become scarce, or are withheld for other reasons, this can result in resentment between the two nations and strain political relationships that had formally been on solid ground.
Internally, the primary consequence of obtaining a resource is the financial resources used to make the acquisition are no longer able to be used for other acquisitions. Each time an organization obtains a resource, it is a conscious choice of the organization to allocate those financial resources to that resource, as opposed to something else. The organization, in this way, sets priorities. This establishment of priorities, from early on, sets a precedence for future operations. For example, if an organization makes research and development a priority, and therefore makes the acquisition of resources to facilitate research and development a priority, from the very beginning of the organization, it is likely to continue to be a priority for the organization as it advances through its stages of development.
Furthermore, it is the setting of these priorities that often determines the success of the organization, within its competitive environment. The financial resources of an organization are finite. Selecting their most effective use in the acquisition of resources can make or break the organization's competitiveness. Devoting financial resources to unneeded or ineffective resources can result in lost competitiveness. This can result in the organization paying the ultimate consequence of organizational demise, if the organization is unable to quickly correct their errors.
How Resource Attainment Varies with the Type of Organization, Environment and the Organization's Stage of Development:
Resource attainment varies greatly depending on the type of organization, the environment they operate within and the organization's stage of development. One of the most difficult tasks a business faces is determining how to best organize their people. Business types often are determined by the sheer size of the number of employees performing the necessary tasks within the organization ("Organizational structure," 2008). An organization may exist as a sole proprietorship, with one person in complete control of the organizational processes. This includes resource attainment. With a single person controlling this process, the decision-making of where the resources should be obtained and which should receive priority is far more simple than any other organization type.
As the organization becomes increasingly successful and grows, there is typically more work to perform and, thus, more people who are needed to perform the increasing number of tasks. Utilizing division of work, the individual workers can specialize in a specific job. Due to the fact that there are multiple people that are all working toward a common goal, these people must be organized. This systematic work arrangement results in a more complex organizational structure ("Organizational structure," 2008). These increasingly complex network of responsibilities, functions, relationships, communication lines, and authorities further add to the complexity of resource attainment.
A traditional organizational...
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